AUD Strengthens as RBA Signals Extended Rate Peak; GBP Eyes UK Budget

The Australian dollar surged 0.5% to 0.6595 against USD after RBA Governor Bullock signaled rates will remain elevated longer than previously expected to combat persistent inflation running at 3.8%. The hawkish tone contrasts with other major central banks considering rate cuts, supporting AUD outperformance. Meanwhile, GBP/USD holds steady at 1.2980 ahead of the UK's crucial budget announcement, where Chancellor Hunt is expected to unveil significant public finance reforms. Markets anticipate potential tax increases and spending cuts to address the £40 billion fiscal gap. AUD/USD technical analysis shows immediate resistance at 0.6620, with momentum indicators turning bullish. GBP traders remain cautious, with 1.3000 psychological resistance limiting upside ahead of budget uncertainties. Both currencies could see increased volatility as policy divergences become clearer, with AUD benefiting from carry trade appeal.